Start spreading the news, New York, DraftKings is trying to come today.
In its second-quarter report to stockholders today, DraftKings CEO Jason Robins confirmed the company is pursuing a New York online sports betting license.
“In New York, the RFA for mobile sports betting was issued in July and we are prepared to respond in a fulsome and timely manner. We look forward to the potential of offering mobile sports betting in New York,” Robins said in the call.
How Will DraftKings Operate in New York Online Sports Betting?
It’s not a surprise that the company is interested in entering the New York sports betting market, but DraftKings is one of the first companies to confirm they are pursuing a license for what may become the biggest sports betting market in the country.
DraftKings currently runs a retail sportsbook at the del Lago Resort and Casino in the state.
Applicants will submit bid packages and each package will be awarded points by the gaming commission. Each bid package must include at least two proposed platform operators to be the front end of the online sports betting program.
It is likely that DraftKings will submit a bid package to the gaming commission to serve as both a platform provider and a platform operator (a skin).
Bid packages are due by Aug. 9.
Will DraftKings Pursue Canada Sports Betting Opportunities?
Robins also revealed the following from the Q2 call:
- Robins noted he views Canada similarly to an American state that legalizes sports betting, except major sports betting operators are already integrated in Canada and offer parlay sports betting. Canada recently legalized single-game event wagering and DraftKings will need to attract players from other operators in the country if it decides to enter the sports betting market.
- DraftKings reported revenue of $298 million, an increase of 320% compared with $71 million during the same period in 2020.
- In addition to New York, Robins noted DraftKings has the opportunity to participate via market access or direct license in Arizona, Connecticut, Louisiana, Maryland and Wyoming. Including New York, the six states represent 13% of the U.S. population and brought the percentage of the population with legalized mobile sports betting to 39%.
- DraftKings is raising its fiscal year 2021 revenue guidance from a range of $1.05 billion to $1.15 billion to a range of $1.21 billion to $1.29 billion, which equates to year-over-year growth of 88% to 100%.
- All projections assume that all announced professional and college sports calendars occur as scheduled and DraftKings continues to operate in states in which they are currently live.
